Sub-contracts

Sub-contracts

Sub-contracting in construction

It is very common for sub-contractors to be engaged by the main contractor on a construction project. Unless the contractor has itself been appointed for specialist skills or qualities where sub-contracting would not be permitted, it is standard in the market for the contractor to consider which packages of works to sub-contract out to specialist sub-contractors when it becomes involved in a project—and in fact it may sub-contract all of the works. See Practice Note: Sub-contracting in construction projects which also explains the difference between domestic 'nominated' sub-contractors and 'named' sub-contractors, and looks at sub-contracting under the various standard form construction contracts.

Typically, the contractor will enter into a direct sub-contract with each sub-contractor for them to carry out, for an agreed sum, a portion of the obligations that the contractor has taken on under its building contract with the employer. Usually the contractor remains fully responsible to its employer for the works carried out by its sub-contractors and therefore is liable for any default by a sub-contractor.

From the contractor's perspective, it needs to ensure that it has passed down all the relevant obligations

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